The Federal Trade Commission recently revealed the most reported text message scam: bank impersonations.
Reports of bank impersonations by text in 2022 jumped to 20 times the number reported in 2019. According to the FTC, consumers reported a loss of more than $330 million to text message scams in 2022. And cash that’s lost because of bank fraud or scams isn’t covered by the Federal Deposit Insurance Corp. or National Credit Union Administration.
Banks are a safe place to keep your money, but there are still a few basic but important precautions you can take to ensure you don’t fall for a bank-impersonation text scam. Here’s how to protect your money from text message scams impersonating your financial institution.
Don’t make money moves under pressure
Text message scammers will try to make you feel like action is required immediately — at the risk of losing your money. It may come as an urgent message warning you to call or click on a link because of alleged suspicious activity.
“Any type of pressure tactic is not legitimate — that is not your bank,” says Paul Benda, senior vice president of operational risk and cybersecurity at the American Bankers Association. As with any decision about your finances, avoid taking actions when you feel scared, stressed out or pressured.
Don’t click on any links from an unsolicited message
If you receive a text message you’re not expecting, be wary — especially if it looks like it might be from your bank.
In a recent poll by security experts at Security.org, 66% of respondents said that they had received a suspicious text from someone they didn’t know, and about 20% clicked on links texted from strangers, which is never advisable. “Look at any type of unsolicited communication very cautiously,” says Benda.
Major banks were popular choices for scammers to impersonate in 2022. According to the FTC, the most common scam text messages often claimed to be from large banks, including Bank of America, Wells Fargo, Chase and Citibank.
Don’t call a phone number that’s texted to you
Just as you shouldn’t click on a link texted to you from someone you don’t know, don’t click on or dial a phone number you receive in a text. Instead, find the official phone number for your bank by going to its website or mobile app. Initiate contact with your financial institution at its official phone number to ensure you’re talking to a legitimate representative, and verify whether there actually is an issue.
“Making that phone call can be the difference between getting scammed versus not getting scammed,” says Tremaine Wills, a financial advisor and founder of Mind Over Money, a financial literacy company in Newport News, Virginia.
One particular kind of text scam resulted in a median loss of $3,000 in 2022, according to the FTC: a text from someone impersonating your bank, instructing you to reply with a “Yes” or “No” to confirm or deny a suspicious transaction. Once you replied, the scammer would call you under the guise of helping you. Their ultimate goal was to either fraudulently transfer money out of your account or obtain personal information such as a Social Security number.
What to do if you were unable to avoid a scam
If you should happen to fall for a text scammer impersonating your bank, there are a few critical steps to take.
First, alert your bank to the incident and get its help in making sure no more money leaves your account fraudulently. Next, report the scam to local law enforcement. Those first two actions are key for trying to recover any cash that was wrongfully taken from your account.
Finally, file a complaint with the FTC at ReportFraud.ftc.gov and/or report the instance to the Federal Bureau of Investigation’s Internet Crime Complaint Center. The FTC also recommends that you forward suspicious text messages to 7726, which helps wireless providers identify and intercept similar text messages. You can also report and block suspicious text messages within your messaging app.
Having a good idea of your account activity is a key part of protecting your money from scams.
“Have a regular practice of knowing what’s going on with your account,” says Wills. If you’re not completely sure of what’s happening in your account, then you might be more likely to be alarmed by a text message claiming to be from your bank, she says.
This article was written by NerdWallet and was originally published by The Associated Press.
California Governor Arnold Schwarzenegger has proposed another plan aimed at tackling the foreclosure crisis in the state, this time calling for a 90-day stay of the foreclosure process for each owner-occupied home on which a Notice of Default has been filed.
At the same time, Schwarzenegger will allow a “Safe Harbor” in which mortgage lenders will be able to exempt themselves from the rule if they provide evidence to a state official that they have an “aggressive modification program” in place.
An “aggressive modification program” has been defined as one designed to keep borrowers in their homes when doing so will bring investors a better return than foreclosing and selling at a loss.
The loan modification model will be similar to the one launched at Indymac Federal, based on a debt-to-income ratio of 38 percent to ensure the new loan is sustainable over the long-term.
Lenders will be encouraged to reduce the interest rate to as low as three percent, increase the amortization to 40 years, or defer some amount of the unpaid principal balance to the end of the loan term to make payments more affordable.
The Governor has also proposed a number of other measures to prevent a mortgage crisis in the future, including increased/standardized licensing for mortgage originators, pre-counseling for borrowers entering into risky mortgages, and expanding fiduciary duties for mortgage brokers.
Additionally, the plan would allow the Department of Real Estate and the Department of Corporations to enforce federal laws and regulations such as the Truth in Lending Act to discipline violators.
But perhaps the most interesting part of the plan is urging the federal government to require loan originators retain a portion of the risk to promote sound loan underwriting, countering the ever-popular originate-to-distribute model.
Whoa, have you seen what just happened to interest rates!?
Suddenly, after at least fourteen years of our financial world being mostly the same, somebody flipped over the table and now things are quite different.
Interest rates, which have been gliding along at close to zero since before the Dawn of Mustachianism in 2011, have suddenly shot back up to 20-year highs.
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Which brings up a few questions about whether we need to worry, or do anything about this new development.
Is the stock market (index funds, of course) still the right place for my money?
What if I want to buy a house?
What about my current house – should I hang onto it forever because of the solid-gold 3% mortgage I have locked in for the next 30 years?
Will interest rates keep going up?
And will they ever go back down?
These questions are on everybody’s mind these days, and I’ve been ruminating on them myself. But while I’ve seen a lot of play-by-play stories about each little interest rate increase in the financial newspapers, none of them seem to get into the important part, which is,
“Yeah, interest rates are way up, butwhat should I do about it?”
So let’s talk about strategy.
Why Is This Happening, and What Got Us Here?
Interest rates are like a giant gas pedal that revs the engine of our economy, with the polished black dress shoe of Federal Reserve Chairman Jerome Powell pressed upon it.
For most of the past two decades, Jerome’s team and their predecessors have kept the pedal to the metal, firing a highly combustible stream of easy money into the system in the form of near-zero rates. This made mortgages more affordable, so everyone stretched to buy houses, which drove demand for new construction.
It also had a similar effect on business investment: borrowed money and venture capital was cheap, so lots of entrepreneurs borrowed lots of money and started new companies. These companies then rented offices and built factories and hired employees – who circled back to buy more houses, cars, fridges, iPhones, and all the other luxurious amenities of modern life.
This was a great party and it led to lots of good things, because we had two decades of prosperity, growth, raising our children, inventing new things and all the other good things that happen in a successful rich country economy.
Until it went too far and we ended up with too much money chasing too few goods – especially houses. That led to a trend of unacceptably fast Inflation, which we already covered in a recent article.
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So eventually, Jay-P noticed this and eased his foot back off of the Easy Money Gas Pedal. And of course when interest rates get jacked up, almost everything else in the economy slows down.
And that’s what is happening right now: mortgages are suddenly way more expensive, so people are putting off their plans to buy houses. Companies find that borrowing money is costly, so they are scaling back their plans to build new factories, and cutting back on their hiring. Facebook laid off 10,000 people and Amazon shed 27,000.
We even had a miniature banking crisis where some significant mid-sized banks folded and gave the financial world fears that a much bigger set of dominoes would fall.
All of these things sound kinda bad, and if you make the mistake of checking the news, you’ll see there is a big dumb battle raging as usual on every media outlet. Leftists, Right-wingers, and anarchists all have a different take on it:
It’s the President’s fault for printing all that money and running up the debt! We should have Fiscal Discipline!
No, it’s the opposite! The Fed is ruining the economy with all these rate rises, we need to drop them back down because our poor middle class is suffering!
What are you two sheeple talking about? The whole system is a bunch of corrupt cronies and we shouldn’t even have a central bank. All hail the true world currency of Bitcoin!!!
The one thing all sides seem to agree on is that we are “experiencing hard economic times” and that “the country is headed in the wrong way”.
Which, ironically, is completely wrong as well – our unemployment rate has dropped to 50-year lows and the economy is at the absolute best it has ever been, a surprise to even the most grounded economists.
The reality? We’re just putting the lid back onto the ice cream carton until the economy can digest all the sugar it just wolfed down. This is normal, it happens every decade or two and it’s no big deal.
Okay, but should I take my money out of the stock market because it’s going to crash?
This answer never changes, so you’ll see it every time we talk about stock investing: Holy Shit NO!!!
The stock market always goes up in the long run, although with plenty of unpredictable bumps along the way. Since you can’t predict those bumps until after they happen, there is no point in trying to dance in and out of it.
But since we do have the benefit of hindsight, there are a few things that have changed slightly: From its peak at the beginning of 2022 until right now (August 2023 as I write this), the overall US market is down about 10%. Or to view it another way, it is roughly flat since June 2021, so we’ve seen two years with no gains aside from total dividends of about 3%.
Since the future is always the same, unknowable thing, this means I am about 10% more excited about buying my monthly slice of index funds today than it was at the peak.
Should I start putting money into savings accounts instead because they are paying 4.5%?
This is a slightly trickier question, because in theory we should invest in a logical, unbiased way into the thing with the highest expected return over time.
When interest rates were under 1%, this was an easy decision: stocks will always return far more than 1% over time – consider the fact that the annual dividend payments alone are 1.5%!
But there has to be some interest rate at which you’d be willing to stop buying stocks and prefer to just stash it into the stable, rewarding environment of a money market fund or long-term bonds or something else similar. Right now, if a reputable bank offered me, say, 12% I would probably just start loading up.
But remember that the stock market is also currently running a 10% off sale. When the market eventually reawakens and starts setting new highs (which it will someday), any shares I buy right now will be worth 10% more. And then will continue going up from there. Which quickly becomes an even bigger number than 12%.
In other words, the cheaper the stocks get, the more excited we should be about buying them rather than chasing high interest rates.
As you can see, there is no easy answer here, but I have taken a middle ground:
I’m holding onto all the stocks I already own, of course
BUT since I currently have an outstanding margin loan balance for a house I helped to buy with several friends (yes this is #3 in the last few years!), I am paying over 6% on that balance. So I am directing all new income towards paying down that balance for now, just for peace of mind and because 6% is a reasonable guaranteed return.
Technically, I know I would probably make a bit more if I let the balance just stay outstanding, kept putting more money into index funds, and paid the interest forever, but this feels like a nice compromise to me
What if I want to Buy a House?
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For most of us, the biggest thing that interest rates affect is our decisions around buying and selling houses. Financing a home with a mortgage is suddenly way more expensive, any potential rental house investments are suddenly far less profitable, and keeping our old house with a locked-in 3% mortgage is suddenly far more tempting.
Consider these shocking changes just over the past two years as typical rates have gone from about 3% to 7.5%.
Assuming a buyer comes up with the average 10% down payment:
The monthly mortgage payment on a $400k house has gone from about $1500 at the beginning of 2022 last year to roughly $2500 today. Even scarier, the interest portion of that monthly bill has more than doubled, from $900 to $2250!
For a home buyer with a monthly mortgage budget of $2000, their old maximum house price was about $500,000. With today’s interest rates however, that figure has dropped to about $325,000
Similarly, as a landlord in 2022 you might have been willing to pay $500k for a duplex which brought in $4000 per month of gross rent. Today, you’d need to get that same property for $325,000 to have a similar net cash flow (or try to rent each unit for a $500 more per month) because the interest cost is so much higher.
And finally, if you’re already living in a $400k house with a 3% mortgage locked in, you are effectively being subsidized to the tune of $1000 per month by that good fortune. In other words, you now have a $12,000 per year disincentive to ever sell that house if you’ll need to borrow money to buy a new one. And you have a potential goldmine rental property, because your carrying costs remain low while rents keep going up.
This all sounds kind of bleak, but unfortunately it’s the way things are supposed to work – the tough medicine of higher interest rates is supposed to make the following things happen:
House buyers will end up placing lower bids which fit within their budgets.
Landlords will have to be more discerning about which properties to buy up as rentals, lowering their own bids as well.
Meanwhile, the current still-sky-high prices of housing should continue to entice more builders to create new homes and redevelop and upgrade old buildings and underused land, because high prices mean good profits. Then they’ll have to compete for a thinner supply of home buyers.
The net effect of all this is that prices should stop going up, and ideally fall back down in many areas.
When Will House Prices Go Back Down?
This is a tricky one because the real “value” of a house depends entirely on supply and demand. The right price is whatever you can sell it for. However, there are a few fundamentals which influence this price over the long run because they determine the supply of housing.
The actual cost of building a house (materials plus labor), which tends to just stay pretty flat – it might not even keep up with inflation.
The value of the underlying land, which should also follow inflation on average, although with hot and cold spots depending on which cities are popular at the time.
The amount of bullshit which residents and their city councils impose upon house builders, preventing them from producing the new housing that people want to buy.
The first item (construction cost) is pretty interesting because it is subject to the magic of technological progress. Just as TVs and computers get cheaper over time, house components get cheaper too as things like computerized manufacturing and global trade make us more efficient. I remember paying $600 for a fancy-at-the-time undermount sink and $400 for a faucet for my first kitchen remodel in the year 2001. Today, you can get a nicer sink on Amazon for about $250 and the faucet is a flat hundred. Similarly, nailguns and cordless tools and easy-to-install PEX plumbing make the process of building faster and easier than ever.
On the other hand, the last item (bullshit restrictions) has been very inflationary in recent times. I’ve noticed that every year another layer of red tape and complicated codes and onerous zoning and approval processes gets layered into the local book of rules, and as a result I just gave up on building new houses because it wasn’t worth the hassle. Other builders with more patience will continue to plow through the murk, but they will have less competition, fewer permits will be granted, and thus the shortage of housing will continue to grow, which raises prices on average.
Thankfully, every city is different and some have chosen to make it easier to build new houses rather than more difficult. Even better, places like Tempe Arizona are allowing good housing to be built around people rather than cars, which is even more affordable to construct.
But overall, since overall US house prices adjusted for inflation are just about at an all-time high, I think there’s a chance that they might ease back down another 25% (to 2020 levels). But who knows: my guess could prove totally wrong, or the “fall” could just come in the form of flat prices for a decade that don’t keep up with inflation, meaning that they just feel 25% cheaper relative to our higher future salaries.
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When Will Interest Rates Go Back Down?
The funny part about our current “high” interest rates is that they are not actually high at all. They’re right around average.So they might not go down at all for a long time.
Remember that graph at the beginning of this article? I deliberately cropped it to show only the years since 2009 – the long recent period of low interest rates. But if you zoom out to cover the last seventy years instead, you can see that we’re still in a very normal range.
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But a better answer is this one: Interest rates will go down whenever Jerome Powell or one of his successors determines that our economy is slowing down too much and needs another hit from the gas pedal. In other words, whenever we start to slip into a genuine recession.
In order to do that however, we need to see low inflation, growing unemployment, and other signs of an economy that’s not too hot. And right now, those things keep not showing up in the weekly economic data.
You can get one reasonable prediction of the future of interest rates by looking at something called the US Treasury Yield Curve. It typically looks like this:
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What the graph is telling you is that as a lender you get a bigger reward in exchange for locking up your money for a longer time period. And way back in 2018, the people who make these loans expected that interest rates would average about 3.0 percent over the next 30 years.
Today, we have a very strange opposite yield curve:
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If you want to lend money for a year or less, you’ll be rewarded with a juicy 5.4 percent interest rate. But for two years, the rate drops to 4.92%. And then ten-year bond pays only 4.05 percent.
This situation is weird, and it’s called an inverted yield curve. And what it means is that the buyers of bonds currently believe that interest rates will almost certainly drop in the future – starting a little over a year from now.
And if you recall our earlier discussion about why interest rates drop, this means that investors are forecasting an economic slowdown in the fairly near future. And their intuition in this department has been pretty good: an inverted yield curve like this has only happened 11 times in the past 75 years, and in ten of those cases it accurately predicted a recession.
So the short answer is: nobody really knows, but we’ll probably see interest rates start to drop within 18-24 months, and the event may be accompanied by some sort of recession as well.
The Ultimate Interest Rate Strategy Hack
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I like to read and write about all this stuff because I’m still a finance nerd at heart. But when it comes down to it, interest rates don’t really affect long-retired people like many of us MMM readers, because we are mostly done with borrowing. I like the simplicity of owning just one house and one car, mortgage-free.
With the current overheated housing market here in Colorado, I’m not tempted to even look at other properties, but someday that may change. And the great thing about having actual savings rather than just a high income that lets you qualify for a loan, is that you can be ready to pounce on a good deal on short notice.
Maybe the entire housing market will go on sale as we saw in the early 2010s, or perhaps just one perfect property in the mountains will come up at the right time. The point is that when you have enough cash to buy the thing you want, the interest rates that other people are charging don’t matter. It’s a nice position of strength instead of stress. And you can still decide to take out a mortgage if you do find the rates are worthwhile for your own goals.
So to tie a bow on this whole lesson: keep your lifestyle lean and happy and don’t lose too much sweat over today’s interest rates or house prices. They will probably both come down over time, but those things aren’t in your control. Much more important are your own choices about earning, saving, healthy living and where you choose to live.
With these big sails of your life properly in place and pulling you ahead, the smaller issues of interest rates and whatever else they write about in the financial news will gradually shrink down to become just ripples on the surface of the lake.
In the comments:what have you been thinking about interest rates recently? Have they changed your decisions, increased, or perhaps even decreased your stress levels around money and housing?
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* Photo credit: Mr. Money Mustache, and Rustoleum Ultra Cover semi gloss black spraypaint. I originally polled some local friends to see if anyone owned dress shoes and a suit so I could get this picture, with no luck. So I painted up my old semi-dressy shoes and found some clean-ish black socks and pants and vacuumed out my car a bit before taking this picture. I’m kinda proud of the results and it saved me from hiring Jerome Powell himself for the shoot.
This article is part of a series put together by the Total Mortgage marketing team that provides loan officers and other sales professionals with a crash course in marketing and self-promotion. To read other articles in this series, click here.
Mastering social media isn’t all about sharing articles and favoriting posts. It becomes a whole different game once you factor in ads.
In this article you’ll learn how to decipher your target audience by analyzing your demographics. I’ll also show you some real life examples of case studies put into action. If this doesn’t satisfy your social craving, keep an eye out for our social media advanced training course!
LinkedIn
Understanding Your Audience
Generally, your LinkedIn audience is made up of your business interactions, former alumni, recruiters, and other professional contacts. Staying aware of the message you send is going to be important, and that means having a clearer picture of who uses LinkedIn. Here’s a hint: keep it professional.
Demographics
Social Media Network Use Cases
Let’s take a look at how different companies advertised on LinkedIn and reaped good results.
Example 1: CommVault had a powerful ad because it appealed to consumers’ emotions. They chose to stick to a single line of text, keeping in mind that people have short attention spans these days. The picture chosen fits this ad theme because it gives off the idea that CommVault understands that technology can be stressful sometimes.
Take away: A simple line of text and a great image can go a really long way when capturing the attention of your audience.
Example 2: Salesforce Marketing Cloud did a great job of targeting a specific audience to get results. In the below ad they targeted not just any marketers, but senior level marketers. The headline asks a question and tells you how you can solve it.
Take away: This ad works because it’s highly targeted and captures the audience’s attention by asking a question that needs an answer.
Example 3: Prudential comes out on top because they embedded a video into this LinkedIn ad. Video is, to put it simply, the next big thing. Just look at Periscope, Vine, Boomerang, and Snapchat—all social media platforms built for sharing videos. Videos hold attention spans more than typical text ads and have been proven to have better click-through and conversion rates.
Take away: Video is proven to work. You need to have the right targeting and message set in place.
Facebook
Understanding Your Audience
It’s safe to say that most people these days have a Facebook account. And that’s good news for you. Be aware that audience is still a key factor here, though, and will be on any platform.
There are two different types of profiles you can have as a single Facebook user—the personal Facebook account and the business related account. If you only choose to have one personal account, be wary of what you post. If your main focus for having a Facebook is using it for business related endeavors, then keep it professional. You don’t want to end up reminiscing with your college buddies at the expense of your potential clients.
Demographics
Social Media Network Use Cases
Example 1: This is a great Facebook ad because it’s very clear what the advertiser wants you to do. “Get 3 Bottles For $19!” It appeals to wine lovers and it’s simple. The discount entices you while the sub-text of the ad provides a strong call-to-action.
Take away: Doing the basics well goes far in a Facebook ad.
Example 2: NatureBox made great use out of the photo ad. The image shows exactly what you’re getting: a free trial and various health orientated snacks. The image is very colorful, and enticing enough to appeal to a large range of people. The hook is very clear in this ad, “Free Trial,” while the sub-head makes connects with the viewer?
Take away: Ads with good imagery and a strong hook really stand out with target audiences.
Example 3: In the above ad, Shutterfly used a multi-product ad perfectly. This works because it has all the components that make up a great ad. It’s visual, relevant, enticing with great pictures, and has a good call-to-action. The gentle hues of blue and grey backgrounds mix well with the eye-catching orange logo and background. The hook is consistent throughout all the content as well:40% off. Plus, it has a cat.
Take away: If you want to incorporate a multi-product ad into your social media strategy, than make sure you keep the components above in mind.
Twitter
Understanding Your Audience
Twitter has 310 million monthly active users. This means your chances of connecting with people in your industry are pretty good. Having a large following is always a step in the right direction, but don’t make the mistake of thinking that’s all you need.
Timing your tweets to reach the most people–and making your chances of retweets and likes more likely—is another important part of a good Twitter strategy. If you’re not sure how to even build a Twitter following you should check out my previous blogs (Social Media Basics and Maintaining your Social Presence) for tips on how to expand your following and reach the right kinds of people.
To really get the best results from your follower base, keep an eye on your Twitter Analytics. Thankfully there are tools to help with that. You can use Tweriod, Twitter Analytics, or Audience to analyze your tweets, figure out which are performing the best, find out when your followers are online, and plan out your next moves. The best thing about these resources is that they have free plans available.
Demographics
Social Media Network Use Cases
Example 1: Papa John’s promoted tweet worked because it incorporated all the elements of a great Twitter strategy. It was timely, relevant, and could be shared easily. It incorporated a holiday all about love with a food most people love–pizza. The hashtag #HeartShapedPizza, meanwhile, gave fans and customers a way to interact with the brand and share.
Take away: A good tweet is often part of a larger social strategy. However, if your sole purpose is just to promote your brand, Twitter could be a great place to start. Coming up with a creative way to stay relevant during a holiday is what makes brands stay on top.
Example 2: This Old Spice Twitter ad worked because it brought a past character, the Old Spice man, out of retirement. This ad was connected to another social campaign (Commercials/YouTube Commercials.) It also works because it incorporates a clever hashtag and a callback to ads on TV or the internet.
Take away: Being memorable is important. If done right, you’ll be able to trade on that recognition for a long time to come. Old Spice’s commercials, for instance, focus on bizarre and funny shenanigans to make a lasting impression.
Example 3: Just like the above examples, Volkswagen USA did a great job of incorporating a relevant tweet with a live social campaign. The above ad was tied into a commercial that unveiled the New Beetle, during the 2011 Super Bowl. This ad performed so well because Volkswagen is a known brand and everyone earns more, “social klout” airing commercials on Super Bowl Sunday.
Take away: Twitter ads perform the best when they are a part of a bigger social strategy. However, if you’re just trying to stay relevant, try sharing tweets on holidays and including a catchy hashtag or clever wording.
Google+
Understanding Your Audience:
Though originally intended as a Facebook alternative, most users consider Google Plus a business-related platform where you can connect with other professionals in your industry and add them to groups, collections, or communities. This means you should expect your audience to be more professional, like with LinkedIn.
Demographics
Social Media Network Use Cases
Winning at Google Plus means having a killer page, content, and promotions. Below are a few pages that excel at all three.
Example 1: Android’s page is the most popular business page on Google Plus with over 140,000 fans. They keep their audience engaged by posting frequently and using “flash” promotions such as their 10 cent app promotion and Google music promotions. Every post they share gets around 2,000 shares and more than 3,000 +1’s.
Take away: Engagement, engagement, engagement is the key to any successful Google+ social campaign. As long as you constantly update your page and share relevant information about your brand you will be able to build a following and use social to your advantage.
Example 2: The NASA page is another example of Google+ greatness. It is updated between 5 and 15 times a day with recent news, photos and videos which helps them stay on top.
Take away: Just like Android, NASA does a great job staying relevant to its fans by constantly posting content, videos, and pictures of NASA’s latest missions and experiments. They know their audience and always stay true to their brand which helps them get their content shared and +1.
The Next Steps
Learning what and when to post on social media is a skill you need to master before sharing content blindly. Of course, that’s easier said than done.
If this series of blogs didn’t answer all your questions, keep an eye out for our Social Media Advanced Course. During this course you will learn the nitty-gritty of social media and what it takes to truly crush it on social media as a loan officer or realtor. We’ll update this post with more info when it goes live.
You can also learn more about what the Total Mortgage marketing team does for our loan officers by checking out other articles in this series, or by visiting our career portal.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
The latest buzzword on the street is “shutdown,” and apart from being buzzworthy, it’s actually very real. National parks are closed and hundreds of thousands of government workers have been told to stay at home.
Fortunately, active military continues to serve and air traffic controllers, prison guards, and border patrol agents remain on the job.
But how does the shutdown affect the mortgage industry? Well, it depends on the type of loan involved, though just about everything will be impacted to some degree.
FHA Loans
The most popular government loans are insured by the Federal Housing Authority (FHA), which operates under the Department of Housing and Urban Development (HUD).
HUD noted that it has 8,709 employees “on board as of pay period ending September 7, 2013.”
In the event of a shutdown, limited staff will remain on hand to handle certain business activities, including FHA loan processing.
Take a look at the chart above to see how few employees would be working during a shutdown…not very many.
In other words, while FHA loans will still continue be processed, there will definitely be delays.
Fortunately, FHA lending has become a lot less popular due to higher premiums, which should offset some of the carnage.
Also note that Ginnie Mae, which guarantees mortgage-backed securities (MBS) backed by federally insured or guaranteed loans, will see its staff slashed, though it said it will “continue to perform its critical and essential functions.”
VA Loans
Despite the U.S Department of Veteran Affairs (VA) being very much a government agency, it will continue to operate many of its operations, including its core medical facilities and home loan processing.
So borrowers looking to obtain a VA loan should expect business as usual, barring any delays that result from the overall shutdown.
If you’re attempting to get a VA loan, patience should probably be exercised as precautionary measure.
USDA Loans
The USDA, while seemingly an agency dedicated to agriculture, also operates a popular zero down home loan program reserved for rural locations.
As a result of the shutdown, the entire USDA website is currently down. Well, there’s a nice little message about the shutdown, but you can’t access any key information.
Additionally, the USDA Rural Development Guaranteed Housing Loan Program appears to be on hold during the shutdown. In other words, nothing is doing at the USDA until politicians learn to get along.
However, the USDA will continue to handle existing customers funds, such as processing escrow accounts to avoid tax penalties.
Fannie Mae and Freddie Mac
While Fannie and Freddie aren’t technically government entities, despite being in government conservatorship (don’t ask), these conventional loans are also being impacted by the shutdown.
First off, government workers whose employment is directly affected by the shutdown could run into snags during the loan underwriting process, seeing that lenders need to verify employment in order to sell their loans to Fannie and Freddie.
As a result, Fannie Mae released guidance on a few workarounds, advising lenders that they can obtain verification of employment (VOE) after the loan closes, but before it is sold. This is actually already permitted, so perhaps just a reminder.
The pair also require lenders to complete requests for borrower tax returns (IRS) and social security numbers, both of which will be difficult to obtain in light of the government shutdown.
Fannie is revising its policies temporarily to allow lenders to obtain the transcripts and complete validation after loan closing, but before loan delivery. In other words, buying some time.
So the hope is that lenders who sell their loans off to Fannie and Freddie will continue to underwrite and process loans on the basis that the shutdown won’t last long enough for them to be stuck with the loans.
Additionally, loan servicers have been advised to waive late payment fees if the borrower’s mortgage payment is late because of a government furlough.
Servicers are also being encouraged to offer Unemployment Forbearance to employees affected by the shutdown, assuming they’re unable to make housing payments.
For the record, even non-conforming loans and jumbo loans will be affected by the shutdown, seeing that lenders may still need to call on government agencies for certain information, so no loans are entirely exempt.
At the end of the day, patience is the name of the game here. Ideally, the shutdown won’t last too long and none of this will matter. But in the meantime, expect delays if you’re attempting to get a mortgage. And pray mortgage rates don’t spike in the process.
With its Southern comfort food, Gulf Coast beaches, historical significance, music heritage, and welcoming communities, there are plenty of reasons to live in Alabama. If you’re considering moving to Alabama then chances are you also have a budget you’re hoping to stay under in your home or apartment search. When it comes to buying a home in Alabama the median home sale price is $284,900.
If that price is out of your budget, don’t worry, we’ve got options to help you find a home. Redfin has collected 10 of the most affordable places to live in Alabama. And the best part is that they all have a median home sale price under $284,900. From Montgomery to Birmingham, let’s jump in and see what cities are on the list.
#1: Gadsden
Median home price: $176,200 Average sale price per square foot: $105 Average rent for a 1-bedroom apartment: $625 Median household income: $35,776 Nearest major metro: Birmingham (60 miles) Gadsden, AL homes for sale Gadsden, AL apartments for rent
With a median home sale price of $176,200, Gadsden is the most affordable place to live in Alabama. About 60 miles northeast of Birmingham, the nearest major metro, Gadsden is home to roughly 33,900 people. If you’re considering moving to this area make sure to explore Noccalula Falls Park, golf at one of the courses, or explore the downtown Gadsden area.
#2: Montgomery
Median home price: $180,000 Average sale price per square foot: $110 Average rent for a 1-bedroom apartment: $775 Median household income: $49,989 Montgomery, AL homes for sale Montgomery, AL apartments for rent
Coming in as the second most affordable place to live in Alabama is Montgomery. When living in this city of 200,600 people, you can visit the Alabama State Capitol building and explore Montgomery Zoo & Mann Wildlife Learning Museum. Discover some of the other historical museums located throughout Montgomery like the Rosa Parks Museum, The Legacy Museum, and the Freedom Rides Museum.
#3: Birmingham
Median home price: $229,000 Average sale price per square foot: $156 Average rent for a 1-bedroom apartment: $775 Median household income: $39,403 Birmingham, AL homes for sale Birmingham, AL apartments for rent
About 200,700 people live in Birmingham. The median home sale price is $229,000 which is about $55K less than the median home sale price in Alabama. If you find yourself moving here, make sure to visit museums like Birmingham Civil Rights Institute and Birmingham Museum of Art and explore the gorgeous Birmingham Botanical Gardens. You can also take in the scenic views at Vulcan Park and Museum or stroll along the trails at Railroad Park.
#4: Bessemer
Median home price: $245,000 Average sale price per square foot: $136 Median household income: $49,989 Nearest major metro: Birmingham (15 miles) Bessemer, AL homes for sale Bessemer, AL apartments for rent
Only slightly more expensive than Birmingham is the city of Bessemer, located just 15 miles southeast of the big city. With a population close to 26,000, there’s still plenty to do in this city. Plan to visit Alabama Adventure & Splash Adventure during the sunny summer months and check out the downtown area.
#5: Enterprise
Median home price: $250,000 Average sale price per square foot: $131 Average rent for a 1-bedroom apartment: $625 Median household income: $49,989 Nearest major metro: Dothan (30 miles) Enterprise, AL homes for sale Enterprise, AL apartments for rent
Another great affordable city to consider moving to is Enterprise. With 28,700 residents, moving to this affordable city gives you the perks of city-life without living in a major metropolitan area. Living in Enterprise, you can spend the afternoon at Johnny Henderson Park, and check out the downtown area.
#6: Prattville
Median home price: $258,409 Average sale price per square foot: $135 Average rent for a 1-bedroom apartment: $1,195 Median household income: $65,932 Nearest major metro: Birmingham (15 miles) Prattville, AL homes for sale Prattville, AL apartments for rent
The home prices in our next city, Prattville, are about $25K less than the state’s average. Home to roughly 37,800 people, Prattville is a great place to consider moving to this year – and you’ll have easy access to what makes this city stand out. Make sure to explore green spaces like Wilderness Park and Pratt Park, check out the Doster Road Artesian Well House, and grab a meal at one of the local restaurants.
#7: Tuscaloosa
Median home price: $259,900 Average sale price per square foot: $174 Average rent for a 1-bedroom apartment: $865 Median household income: $44,880 Nearest major metro: Birmingham (60 miles) Tuscaloosa, AL homes for sale Tuscaloosa, AL apartments for rent
Next on our list of affordable places to live in Alabama is Tuscaloosa. With a population of close to 99,600, living in Tuscaloosa is a great option for those looking for a mid-sized city to call home. If you find yourself moving to this city make sure to spend the day at Lake Tuscaloosa, watch a show at Tuscaloosa Amphitheater, walk along the Tuscaloosa Riverwalk, or explore the museums and campus grounds at the University of Alabama.
#8: Decatur
Median home price: $260,000 Average sale price per square foot: $140 Average rent for a 1-bedroom apartment: $749 Median household income: $52,539 Nearest major metro: Huntsville (25 miles) Decatur, AL homes for sale Decatur, AL apartments for rent
If you’ve lived in Alabama for a while, it’s likely you know of Decatur. About 57,900 people reside in Decatur. Be sure to explore the expansive Wheeler National Wildlife Refuge, visit museums like Old State Bank and the Cook Museum of Natural Science, or check out the downtown area once living in Decatur.
#9: Northport
Median home price: $272,900 Average sale price per square foot: $171 Average rent for a 1-bedroom apartment: $885 Median household income: $69,921 Nearest major metro: Tuscaloosa (2 miles) Northport, AL homes for sale Northport, AL apartments for rent
Another great place to consider living in Alabama is Northport where the population is about 31,100. Northport is conveniently located just two miles north of Tuscaloosa. Popular things to do in Northport include exploring the Northport Riverwalk and golfing at one of the courses.
#10: Phenix City
Median home price: $279,000 Average sale price per square foot: $125 Average rent for a 1-bedroom apartment: $857 Median household income: $43,296 Nearest major metro: Columbus, GA (5 miles) Phenix City, AL homes for sale Phenix City, AL apartments for rent
The final city on our list is Phenix City, located along the Alabama-Georgia border. This city has a population of 38,800 and you can grab a bite at one of the local restaurants, visit one of the parks like Moon Lake, or drive over to nearby Columbus, GA. There’s always something to check out while living in Phenix City.
Methodology: All cities must have over 50,000 residents per the US Census and have a median home sale price under the average median home sale price in Alabama. Median home sale price and median sale price per square foot from the Redfin Data Center during August 2023. Average rental data from Rent.com August 2023. Population and median household income data sourced from the United States Census Bureau.
The best-kept secret for interior designers isn’t so secret anymore. Every year, Etsy sells millions of handmade, one-of-a-kind, and vintage items created by independent sellers around the world.
Popular for design experts, DIYers, and anyone interested in buying unique items from an online global marketplace, Etsy has a huge fan base. In fact, every 15 seconds, someone searches Etsy online for vintage or handmade furniture.
A recently released study, The Top 2023 Home Décor Trends, According to Etsy, reveals the top home décor trends so far this year, and interior design experts agree. While some trends from 2022 are still going strong, the latest emerging trends are rooted in tradition and a little unexpected.
Vintage Patterns
Younger generations are into old-school patterns. Nostalgic, beautiful, and cozy, these patterns are everywhere, from teacups to furniture, fabric, and wallpaper. Between February and April this year, Etsy saw drastic increases in online searches for various types of vintage patterns in home décor. For example, embroidered botanical pieces saw a 1,041% increase, while vintage wallpaper saw a 162% increase, and floral home décor saw a 118% jump.
Dayna Isom Johnson, an Etsy trend expert and author of ‘The Top 2023 Home Décor Trends, According to Etsy,’ provided further insight into one of Etsy’s most popular trends while chatting with the New York Post. “Reminiscent of old country charm, traditional patterns like toile, chintz, and vintage floral prints are popping up everywhere from textiles to teacups, introducing a touch of eclectic nostalgia straight out of our regency romance dreams.”
Evelina Juzėnaitė, Principal Interior Designer at Planner 5D, also believes vintage is making a comeback. “This furniture seamlessly blends with various interior styles; it’s available in different colors and integrates bright elements. Before, clients used to prefer more neutral tones – brown, grey, etc. Now they are not afraid of something bright; it is not necessarily a sofa, but even bright cushions, vases, etc., which significantly impact the overall interior,” she points out.
Parisian Interiors
Chic Parisian interiors are a mix of classic and contemporary, often with dark woods, light walls with vintage finds like oil paintings, ornate frames, marble accents, and gilded mirrors. In the three months leading up to their 2023 study, Etsy saw increases in online searches for Parisian home décor pieces, including a 119% increase for wall mirrors, 96% for marble sinks, 67% for custom oil paintings, and 44% for ruffled duvet covers.
Regarding larger home décor pieces, Parisian interiors often showcase round furniture with dramatic curves. The movement is seen in either the sofa’s wings, arms, back, or the entire sofa itself, and the shape is often the furniture’s main attraction, not any added detailing.
Michelle Minch, LA Homes Stager and Chief Design Officer at Moving Mountains Design, attended the MOM Furniture Market in Paris earlier this year. She noticed that many pieces were curved and rounded and that Boucle’s fabrics were everywhere. After returning to the U.S., Michelle Minch received notifications from US vendors indicating new inventory – “it was all curves and lots of Boucle’! I am starting to see this trend showing up in interior design and home staging projects now.”
Evelina Juzėnaitė of Planner 5D agrees that curved elements are regaining popularity. “From shelves and cabinets with semi-circular details to sofas and bed headboards, these rounded and curved shapes add a touch of elegance and uniqueness to any interior design.”
Mermaidcore
While this new trend is whimsical and even a little magical, the mermaid obsession has officially swum into the home décor world. Maybe the mermaidcore trend rose to home décor fame because of Disney’s live-action The Little Mermaid release.
Or maybe it’s simply because the pieces and fun, playful, and easy to incorporate into any room’s design. In further conversation with the New York Post, Etsy trend expert, Dayna Isom Johnson, states, “This emerging ocean-inspired look is a much-welcomed extension of some of our favorite existing trends – like last summer’s crustaceancore and coastal grandmother – but with a more whimsical and playful twist,”
And according to TikTok, this trend is mainstream. The hashtag now has over 375 million views, highlighting how cheerful, easy, and budget-friendly it can be to infuse interiors with shells, bubbles, sea glass, pearls, and under-the-sea shapes. According to Etsy’s study, between February and April this year, Etsy saw increases in online searches for mermaid-core home décor items, including a 125% for scalloped runners, 30% for oyster shell ring dishes, 24% for mother-of-pearl trays, and 22% for bubble light fixtures or pendants.
Nature-Inspired Décor
According to Etsy, online searches for nature-inspired décor increased 218% between February and April 2023. A trend going strong since 2022, Evelina Juzėnaitė of Planner 5D states Biophilic design, which emphasizes a connection between nature and the artificial environment, is on the rise. She added, “There is a growing interest in adding plants, natural materials such as stone, wood, concrete, etc.,” claiming that “Such an interior seems soothing to many and creates a natural atmosphere.”
Jewelry for The Home
Small details can make big statements. Jewelry for the home adds eye-catching details that make interiors unique and oftentimes a little luxurious. From brass hardware to suncatchers, wall hooks, and knobs — a little jewelry is interesting and fun. and people are into it. Etsy saw a whopping 139% increase in gemstone décor this year.
Dark Wood
Light-colored Scandinavian-inspired wooden pieces are out, and darker, traditional-colored wood is in. According to Etsy, the company saw a 337% increase in online searches for walnut-colored desks and accessories and a 24% decrease in online searches for Scandinavian décor.
Dayna Isom Johnson, the Etsy trend expert, gave insight into the increased popularity of dark wood in home décor, stating, “Darker woods create a sense of warmth and coziness into a space while also providing a touch of character and sophistication to a room.”
Paper Lighting
What’s old is new again. Paper lighting of all sizes is playful yet practical, and online shoppers are taking notice. Etsy saw an 85% increase in online searches for hanging paper lanterns, a 61% increase for rice paper lighting, and a 24% increase for paper floor lamps. Their unique ability to diffuse light and create a warm atmosphere will help paper lighting stay on trend for the remainder of the year.
Rugs With Personality
Handwoven rugs of all different colors, styles, and textures saw a 401% increase in online searches on Etsy. Custom rugs saw a 62% increase, colorful rugs saw a 55% increase, and wavy rugs saw a 49% increase. Adding style and personality to any home, rugs are a great way to transform a room by adding texture, pattern, and color.
This article was produced and syndicated by Wealth of Geeks .
I’ve written about the Home Affordable Refinance Program (HARP) on this blog many, many times.
Most of the posts have focused on possible extensions and expansions for the popular program, which like any other assistance program has a number of restrictions.
Perhaps the most significant one is that only those with loans sold to Fannie Mae and Freddie Mac are eligible to take part.
As a result, those with private-label mortgages are out of luck, or at least have to turn to their own loan servicers for possible assistance.
Another major roadblock is the HARP cutoff date, which is currently set firmly on May 31, 2009, despite many pleas to push it out another year.
Those have thus far fallen on deaf ears, ostensibly because borrowers who purchased homes or refinanced after the mortgage crisis aren’t the targets of relief efforts, whether “fair” or not.
New HARP Cutoff Date, Kind Of
Anyway, the hitch with the current cutoff date is that it isn’t based on when the loan actually closed, but rather when Fannie Mae or Freddie Mac acquired the original loan.
So borrowers may have closed their loan on May 30th, 2009, but their loan didn’t make its way over to one of the government-sponsored enterprises (GSEs) until after that crucial cutoff date.
This time lag, which could vary from a few days to a few weeks or longer, could have unintentionally shut out a lot of borrowers. It’s unclear how many, but it could be material.
And so Fannie and Freddie are revising their policies to use the note date of the mortgage as opposed to the securitization date.
Freddie Mac said it would make the change effective October 27, 2013 in order to make its “eligibility requirements more transparent to borrowers.”
By more transparent, they mean you probably know when your loan closed, but have no idea if and when it was sold off to Freddie Mac.
In accordance with this change, the Freddie Mac Loan Look-Up Tool will be updated by October 27.
Over at Fannie Mae, it’s a similar story, though there are a few unique details to take note of.
Come November 16, when they make their other major underwriting changes, including the new minimum 5% down payment, the May 31, 2009 eligibility date for the Refi Plus will be based on the note date of the original loan.
Again, they are opting for the note date in a bid to be more transparent. And they’re encouraging lenders to resubmit loans that might be eligible based on the rule change.
So it’s not HARP 3 by any means, or HARP 2.5, but it is a slightly better HARP, no? That’s why I’m referring to it as HARP 2.1.
It’s a little boost that comes at exactly the right time, seeing that long-term fixed mortgage rates are inching back toward the 3% range again, something many thought wouldn’t happen again.
If you think you might be on the cusp, speak to a lender soon to see if you’re eligible based on the new guidelines.
If you’re like a lot of people, you don’t have the first clue about investing, at least not proper investing. To clear up the confusion and help take the sting of intimidation out of the realm of finance, learn a few tips for first time investing to help you grow your wealth, retire with peace of mind, and meet your financial goals.
What is Investing, Really?
The absolute best place to start when it comes to learning about investing is with learning exactly what investing is. Simply put, investing is the act of using your money, rather than your time, to build your money. Sure you can grow your wealth by working more, but there are only so many hours in the day. You can easily burn yourself out working around the clock; hence, learning about investing for beginners.
Compounding Your Returns
There’s no better feeling than watching your investments grow, all without lifting a finger or investing more money. Rather than pat yourself on the back and withdraw some of the money you’ve earned, it’s much better to leave it exactly where it is. Compounding is a financial term that simply means you’re stacking your return on investment, or ROI, the longer your investment is recycled and allowed to grow.
Let’s say you invest $20,000 today when interest rates are six percent. After a year, you’ll have $21,200, compounded annually. Rather than touch a cent of that money, you instead leave it where it is. In a few more years, you’ll have made thousands, all without having to put in a second of extra work. Now, let’s take a look at some options for investing for beginners.
The 3 Big Investing: Exchange-Traded Funds, Mutual Funds, and Certificates of Deposit
Exchange-traded funds, often referred to as ETFs, are one of the most popular investment options. These funds can be either sold or bought on an exchange throughout the trading day. ETFs are linked to the U.S. stock market and make great investments for both beginners and experts.
If you’ve got at least $1,000 to invest, a mutual fund may be ideal for first time investing. Know that you’ll likely have to have at least a $1,000 in your fund in order for it to remain active. Mutual fund investments are an ideal choice for those who are looking to save money for retirement, and they’re even better if you’re currently contributing to either a 401(k) fund or an IRA.
Looking for one of the safest options investments out there? Consider a Certificate of Deposit, also known as a CD, which is insured by the Federal Deposit Insurance Corp, which means you can’t lose money. That being said, this low risk comes with a relatively low return, possibly less than one percent a year. As a beginner, you’ll want to be rather conservative with your first CD.
Finding the Right Amount of Risk
Due to the fact that there’s hardly any risk without reward, you need to know just how much risk you should take when it comes to investing for beginners. The best way to do this is to subtract your current age from 100. Someone who is 20 can invest 80 percent of his or her investment in a risky option, like the stock market. The remaining 20 percent should be funneled into a CD or a U.S. savings bond.
Additionally, you’ll be wise to go over your investing options with an experienced and trusted financial adviser who has worked with beginner investors like you. Know that you’ll have to pay for professional advice, which can be as much as one percent a year. Before deciding on an adviser and agreeing to any fees, check the FINRA BrokerCheck to make sure the individual is well-qualified and currently registered.
No matter your level of risk or your adviser, there are a few standards to adhere to when it comes to investing:
Keep your costs low
Diversify your investments
Make sure you’re investing in a way that matches your level of risk
If You’re Going to Invest, Start Sooner Rather Than Later
Going back to compounding, first time investing should be done ASAP. This isn’t to say that you should rush out and put down money on a mutual fund or CD, just that the earlier you start investing, the more you’ll be able to reap what you sow.
Let’s say you invest $15,000 at the age of 25 when annual interest rates are 5.5 percent. When you turn 50, that investment will have grown to $57,200.89. If you had waited until the age of 35 to invest that same amount of money at the same annual interest rate, you’ll only have $33,487.15 when you’re 50, a difference of $23,713.74. Let that sink in for a moment.
These are just the basics of your many investing options. Do some more digging on your own, and seek out family and friends who invest for more information.
At the height of the Great Depression In 1932, Ole Kirk Christiansen, a Danish carpenter, had fallen on hard times. With few jobs available, he began crafting wooden toys in his workshop to make ends meet for his wife and three boys. It was a humble beginning for what would become one of the most iconic and beloved brands by people all over the world.
In the early years, the company produced a wide variety of dozens of wooden toys—yo-yos, model airplanes, toy trucks. But after a factory fire destroyed their wood supply and production facilities, the company began experimenting with a new type of material — plastic. Two years later, a simple and versatile “automatic binding brick” was born with great success.
By the 1950s, the company began narrowing its focus, discontinuing non-brick toys until only the little plastic brick remained as its core product. It was this pivotal decision that laid the foundation for building a toy empire.
Those tiny plastic bricks became the ubiquitous toy that kids played with and parents stepped on for decades to come.
By honing in on its most popular core product, Lego was able to rise from being an “all size fits no one” company, to a toy empire that provides fun and familiarity for kids to build and create.
Within these blocks lies a big lesson for Realtors and teams — focus.
To achieve endless success, Lego discovered that its iconic bricks were all it needed to succeed, and Realtors must apply the same logic, finding motivated people to serve is the product.
Each week, I meet with the most successful Realtors in the nation. What I find separates the good from the most wildly profitable and helpful, is their flirtation with that tempting mistress— distraction. In a noisy industry full of pandering proptechs, influencer marketing, costly seminars and TikTok, it’s hard to be Lego.
The successful teams that are often trying to break through the messy middle, always tell me that ‘selling real estate is simple’. But when it comes to leading people, I find that’s where they tell me that complexity really sets in. So recently, at Livian Mastermind I asked Gary Keller what he thought about the simple differences between selling and leading.
His answer? “It’s all simple.”
“Once you decide to succeed through others, you and your people are doing the same thing. It looks exactly the same.” Keller said. “How many agents hitting their goals, on your team, do you have to have to hit your goals? Then, each day go look for motivated people that you want to help be successful. That’s it. It’s all simple.”
The road to success is simple for both agents and leaders. It is built one brick at a time by focusing on finding and helping motivated people achieve their goals while ignoring all of the other toys.
Eric Forney is vice president and director of industry relations for LIvian.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the author of this story: Eric Forney at [email protected]
To contact the editor responsible for this story: Tracey Velt at [email protected]